Gresham, Sir Thomas
bad money drives out good,i.e., when depreciated, mutilated, or debased coinage (or currency) is in concurrent circulation with money of high value in terms of precious metals, the good money is withdrawn from circulation by hoarders. It was thought that Gresham was the first to state the principle, but it has been shown that it was stated long before his time and that he did not even formulate it.
See J. W. Burgon, Life and Times of Sir Thomas Gresham (2 vol., 1839, rep. 1968); biography by F. R. Salter (1925).
The Columbia Electronic Encyclopedia, 6th ed. Copyright © 2012, Columbia University Press. All rights reserved.
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